-8-
such value is finally determined for federal
estate tax purposes.
The $6,350,000 that Hamilton retained was an amount she and her
advisers carefully determined would allow the family business to
continue, as well as to provide for her and her own family’s
future.
But note especially the final phrase: “as such value is
finally determined for federal estate tax purposes.” And add to
it another shield strapped on to the disclaimer--a “savings
clause.” This clause said that to
the extent that the disclaimer set forth
above in this instrument is not effective to
make it a qualified disclaimer, Christine
Christiansen Hamilton hereby takes such
actions to the extent necessary to make the
disclaimer set forth above a qualified
disclaimer within the meaning of section 2518
of the Code.
Consider how these insertions of uncertainty as to the amount
actually being donated might come into play should the estate
assign an unusually low value to the property being disclaimed.
In such a scenario, Hamilton would take (and the estate tax would
be paid on) her $6.35 million. But the residue would be divided
between the Foundation and the Trust. Should it turn out that
the estate underreported that value, Hamilton’s failure to
disclaim her remainder interest in the Trust would mean that she
would capture much of the value of that underreporting as she
herself approached retirement age in 20 years’ time. And if one
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Next
Last modified: March 27, 2008